Confusion Over Plus SMS Director Resignations

The entire board of directors of troubled New Zealand based Plus SMS resigned yesterday - but then rejoined the company this morning. Share trading in the company was suspended on the NZAX stock exchange as the company issued a series of announcements about the resignations.

No reasons were given for the resignations at the time, but a statement this morning to the NZAX clarified that a miscommunication had occurred, which in itself has raised more questions about how a company can issue a series of public statements, then say they were all a mistake.

The company said in the statement that, "the market was erroneously advised that Mr Robert K Hunter had resigned from the Board of Directors. Mr Hunter did not table his resignation from the Board and his position as Chairman remains unaltered."

"Mr Murray G Allott and Mr Clive W Thomas all resigned from the Board as a result of miscommunication. After consultation with their fellow colleagues have agreed to withdraw their resignations and rejoin the Board."

"The Board has been unable to contact Mr Hawinkles at this point in time and further information will be provided when his position is clarified."

Earlier this month, the company settled a long running legal dispute with the firm's founder, Garry Donoghue and apologised for "any disparaging comments made about him by representatives of Plus SMS Holdings,"  The company has been trying to rebuild its credibility after admitting missleading the stock market about its financial position back in September 2006. The incorrect statements cost the company founder Garry Donoghue, his job and his shares in the company - and sparked a legal investigation into the company by the Securities Commission. Shares which had been as high as 82c plummeted to 16c when the scandal broke.

Since then, the company has worked to secure new contracts - most significantly in a deal with Microsoft in Brazil.

Posted to the site on 12th June 2009